Peter Dicken 2015 The State Really Does Matter

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© Peter Dicken 2015

© Peter Dicken 2015

The State Really Does Matter Global Shift Chapter 6

The State Really Does Matter Global Shift Chapter 6

Review • Concepts to Review – – – Globalization Geographical embeddedness GPNs and TNCs

Review • Concepts to Review – – – Globalization Geographical embeddedness GPNs and TNCs Impact of 2008 financial crisis Convergence and divergence • Key Words – Nation-state in globalization, varieties of capitalism, GATT/WTO, development, national culture, borders and ‘borderlessness’

Definition of the State • State, nation-state and nation without state • Hofstede –

Definition of the State • State, nation-state and nation without state • Hofstede – four dimensions: individualism, power distance, uncertainty avoidance, ‘masculinity’ • Schwartz – seven-dimension scale: conservatism, intellectual autonomy, affective autonomy, hierarchy, egalitarian commitment, mastery and harmony • Both studies have in common the (debatable) idea that there are identifiable traits which vary across cultures • Role of the state – – Support markets Provide physical and human infrastructure Use globalization as means of increasing power Two types of macroeconomic policies • fiscal and monetary

Varieties of Capitalism • • Liberal market economy Coordinated market economy Neo-liberal market capitalism

Varieties of Capitalism • • Liberal market economy Coordinated market economy Neo-liberal market capitalism Social market capitalism Developmental capitalism Authoritarian capitalism Neo-authoritarian capitalism • Are institutions and history inherent obstacles to convergence or will there be convergence to best practice in economic governance?

The State in the Global System • Most states are mixed economies; certain sectors

The State in the Global System • Most states are mixed economies; certain sectors nationalized, others private • In 1980 s– 2000 s: deregulation/reregulation and privatization • Post-2008 government intervention begins again to stimulate growth • Trade regulation – GATT/WTO • Strategies of newly industrialized states – ISI – EOI – EPZ

Strategies of States • States as competitors – Locational tournaments, competitive bidding – Porter’s

Strategies of States • States as competitors – Locational tournaments, competitive bidding – Porter’s argument • Rivalries between domestic firms create pressures on firms to innovate • Role of chance and of government • States as collaborators – To achieve specific economic and welfare goals – Regional trade agreements • Have a number of motivations, e. g. defensive, influencing investment • Types include free trade area, customs union, common market, economic union (give examples of each) – Global activity is concentrated in mega-regions: North America, Europe and East Asia